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Everything You Need to Know about Personal Loans before Applying for One

Everything You Need to Know about Personal Loans before Applying for One

At the end of the 20st century getting a loan was considered to be almost a sin! But those times have passed and all types of loans are available to anyone in need any moment one needs it. There is no matter why you need to get some amount of money right now because personal loans are created to help your dreams come true!

Personal loans general info

Personal loans are very simple and easy to get. They are considered to be unsecured loans, meaning that you do not need to give any guarantees in order to acquire them.

Personal loans in Toronto can be obtained with only a few documents which are also very simple. When you collect all the required documents you need to put in the request for a loan and then simply fulfill the eligibility criteria. If everything is ok with every step you are able to get the receipt with the money within a couple of weeks.

As a rule you get from a year to a year and a half to repay the loan. The great thing here is that you do not have to give any property (movable or immovable assets) as a security in order to process this loan.

Personal loans basics

First of all, here is the list of the required documents:

  • Passport or a driver’s license as an identity proof, a pan card.
  • Proof of the residence (passport, electricity/phone/gas bill, bank statement ot ration card).
  • Salary slip in case you have a job. It should be special form (#16) and half a year bank statement. For self-employed 2-3 years’ accounts statement or IT returns to prove constant income.

Interest rates

As a rule, personal loans tend to have pretty high interest rates. It is explained by the fact that the lender does not have guarantees from a borrower in case the latter refuses to pay the next loan payment. In general interest rates are between 16 to 30 percent for a year. But in general they of course differ depending on the lender and the credit score you have.

Other charges:

  • A completion procedure fee. This is non-refundable charge which is taken as a “salary” for the lender who processes your case. In case you get loan rejection you might get some percentage of that fee, but not the whole sum.
  • In case of loan prepayment you might get lower interest rates.
  • Do not forget about the fees that are not required by the bank, for example when you prepare your documents, some late fees, statement duplication, etc.

As you can see personal loans is a great possibility for those who need money urgently and a pretty big sum of them.
Edmonton personal loans experts still advise to weight all pros and cons in order to make sure that you will be able to repay the loan in the set period of time and that this will do best for you. So act wise and follow your dream!

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